W.P. Carey Buys, Leases Back Air Enterprises Warehouse Facility
- Feb 11, 2014
A Northeast Ohio industrial property recently changed hands. The Air Enterprises Manufacturing/Warehouse Facility in Streetsboro, Ohio, has been acquired by W. P. Carey Inc., a publicly traded REIT, for $7 million.
Air Enterprises will continue to occupy the 178,180-square-foot property, which it has leased for a period of 15 years. The Akron-based company started moving into the new facility last fall as part of its expansion plans. The Record-Courier reported that Air Enterprises will create more than 250 new jobs at the Streetsboro facility, located at 1777 Miller Parkway, less than 25 miles from Cleveland’s central business district, in the next five years.
The property was constructed in 1993, on 23 acres of land. It offers office and warehouse space, as well as more than 250 parking spaces. It was previously occupied by Commercial Turf Products. According to PropertyShark.com, Commercial Turf Products acquired the facility in 1997 for $4.9 million.
W. P. Carey acquired the facility on behalf of CPA®:18 – Global, one of its managed non-traded REIT affiliates. It announced the acquisition together with that of a 1.6 million-square-foot Chicago distribution facility leased to a Solo Cup affiliate. For the second property, W. P. Carey paid approximately $85 million.
“The two transactions closed on behalf of CPA®:18 – Global demonstrate how W. P. Carey can tailor transactions that enable private companies and institutional real estate investors to sell assets on a timely basis consistent with their specific investment strategies and liquidity requirements. Sourcing, structuring and executing on a variety of single-tenant property types in diverse industries and locations supports our established investment strategy of generating stable, long-term cash flow for investors,” said Gino Sabatini, W. P. Carey managing director & co-head of global investments, in a statement for the press.
CBRE recently reported that Northeast Ohio’s industrial market continued to improve in 2013, with availability decreasing to 7.16 percent at the end of the year. Sale and leasing activity in the region increased, hitting a high of 2.8 million square feet in the third quarter of 2013, levels not seen since pre-recession. And CBRE expects sale prices to continue to bounce back to pre-recession levels this year, as well.
Photo credits: Google Maps.